Sunday, January 12, 2003
Opposition accuses Chavez of inciting violence
www.deepikaglobal.com
CARACAS: Opponents of President Hugo Chavez accused the embattled leader of promoting political violence after opposition-led marches in several cities were attacked by radical government supporters.
"It's the leader of the country who is provoking this violence," said Carlos Ortega, president of the Confederation of Venezuelan Workers, the nation's largest and most powerful trade union.
"If we live in democracy, why don't you allow the public to march peacefully?" added Ortega.
Government supporters attacked anti-Chavez marchers in Caracas and outside oil facilities around the country, the latest incidents of political violence in this crisis-stricken South American country of 24 million.
"Chavistas," as the president's backers are called, attacked a rally outside a refinery in Cardon, 270 miles (434 kilometers) east of Caracas, wounding a 40-year-old worker and a 28-year-old demonstrator, said Luis Arends, a civil defense worker.
In Caracas, gunmen fired several shots and threw tear gas at an opposition rally. No one was hurt, and the rally resumed. There were no arrests.
Chavez supporters armed with machetes and sticks also prevented a demonstration at an oil facility in central Carabobo state, Globovision television reported. A minor clash occurred at a plant in Barinas state.
Chavez, a leftist former paratroop commander who was elected in 1998 and re-elected two years later, denies he is fomenting escalating violence. Chavez opponents claim the president's fiery rhetoric incites violent reactions from his most radical backers.
In January 2002, four supporters of Chavez's ruling party were slain in western Zulia state. Nineteen died last year on April 11, when rival marches clashed in downtown Caracas. The bloodshed spurred a coup and Chavez's brief ouster. Loyalists in the military returned him to power on April 14.
Three more citizens were killed, presumably by a lone gunman, at an opposition rallying point on Nov. 6, and two government supporters died of gunshot wounds at a street march last Friday.
Thursday's aggressions occurred as thousands of Venezuelan bank workers stayed home to support a nationwide strike seeking new presidential elections, further weakening the currency as analysts speculate that Chavez's government is running out of money.
The nationwide strike that began Dec. 2 has shut thousands of businesses and brought Venezuela's vital oil industry - once the world's fifth-largest exporter - to a virtual halt. Gas has been imported.
Amid fears of a banking crisis, Venezuelans bought US dollars and sent the bolivar currency to a record low of 1,593 to the dollar - 5 percent weaker than Wednesday and down 12 percent for the year.
Analysts speculated Chavez's government may have to devalue the bolivar to balance its budget. Most government income is in dollars and a weaker bolivar would increase its domestic spending power.
Spokesmen at three of Venezuela's largest banks - Banco de Venezuela, Banco Provincial and Banesco - said 80 percent of the country's nearly 60,000 bank employees stayed home Thursday.
Jose Torres, president of the opposition-aligned Fetrabanca workers union, urged employees to provide only minimal services -such as processing payments for medical emergencies - Thursday and Friday.
But Luis Boris, secretary general of the pro-government bank workers union Sutrabanca, accused bank owners of closing doors without consulting workers.
A nonbinding referendum on Chavez's rule is scheduled for Feb. 2. Chavez insists the constitution only requires him to respect a possible recall referendum in August, the midpoint of his six-year term.
Strike organisers - including leaders of the nation's largest trade union, its business chamber and the state-run oil company -claim their protest is as strong as ever. Many factories, industrial parks and supermarkets remained closed.
But there were signs many are tiring of the strike. There was more traffic on streets and sidewalks and in shops, restaurants and markets.
Efforts by Chavez to jump-start operations at Petroleos de Venezuela S.A., or PDVSA, have been partially successful.
Crude output is estimated at about 400,000 barrels a day, compared with the pre-strike level of 3 million barrels. Exports, normally 2.5 million barrels a day, are at 500,000 barrels a day.
Energy Minister Rafael Ramirez claimed PDVSA will produce 1.5 million barrels a day by next week and will reach full capacity next month. Dissident PDVSA workers doubt production can reach those levels so soon.
WRAP: OPEC Deals With Venezuela While Eyeing Iraq Issue
sg.biz.yahoo.com
Sunday January 12, 4:47 AM
By Fred Pals Of DOW JONES NEWSWIRES
VIENNA (Dow Jones)--OPEC members will try to find a compromise Sunday to raise the group's production ceiling by 1 million-1.5 million barrels a day to ease world oil prices, but the current turmoil in Venezuela is likely to be overshadowed by the prospect of an imminent U.S.-led war against Iraq.
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A shortfall in crude output from Venezuela is already covered by other Organization of Petroleum Exporting Counties members pumping in excess of their quotas. It's the consequences of a war with Iraq that is setting nerves jangling, analysts say.
"For how long will Iraqi production be cut off in the case of a war? And what are the implications for the region? These are the issues OPEC has to deal with and look at during this meeting," William Edwards, president of Texas-based Edwards Energy Consultants, said Saturday.
Against such a cloudy outlook, OPEC kingpin Saudi Arabia has moved to reassure the world's oil markets that the group can make up for any shortage. Ali Naimi, Saudi Arabia's Minister of Petroleum & Mineral Resources, on his arrival in Vienna for the meeting, insisted: "There will be no shortage of oil in the market. There will be no missing barrels," The price of crude, he said, should be "less than what it is today."
The Saudi pledge, a timely release of U.S. Strategic Petroleum Reserves and a seasonal downturn in consumption starting in the second quarter will help cool world oil prices, Edwards said. "But I don't expect prices to ease a lot for some time," he added.
Chavez Sends Two Top Officials To Meeting
The Venezuelan problem can't be ignored at this meeting, however. The embattled former paratrooper Chavez understands that and has dispatched a heavyweight delegation featuring both his Oil Minister Rafael Ramirez and the president of state-owned oil monopoly Petroleos de Venezuela (E.PVZ), Ali Rodriguez, a former OPEC Secretary General.
That is to make sure the country gets its share of any quota increase eventually, even though it can't pump any additional oil now, Venezuelan oil ministry sources said.
OPEC needs to get the message from Caracas that Venezuela will return to its production levels of around 3 million b/d pumped before a general strike began 42 days ago, the sources said. Current production is seen at around 400,000 b/d, or even less.
"Venezuela is also crucial. For example, what happens if Venezuelan oil comes back on the market soon?" asked Herman Franssen, president of Washington-based International Energy Associates. But Franssen, as most analysts agree, thinks it will take Venezuela months to get back to previous production levels, if it gets there at all.
While there is little doubt OPEC will decide to boost by 1 million b/d or more over its current 23 million b/d limit, how many new barrels actually hit the market is a different matter, Franssen added. "Everybody except Saudi Arabia and maybe Kuwait is already producing at full capacity. I think we're talking of around 500,000-600,000 barrels of new oil," Franssen said. That may not be enough to cool prices significantly, he added.
OPEC, excluding Iraq and with sharply reduced Venezuelan volumes, pumped 22.6 million in December, according to a recent Dow Jones Newswires survey. Iraqi production has been seen at slightly more than 2 million b/d. Global demand for OPEC output is seen at around 25 million b/d.
Excluding Iraq and Venezuela, OPEC's spare capacity is seen at around 3.5 million b/d with the bulk - around 2.5 million b/d - coming from Saudi Arabia, according to OPEC figures.
Most analysts expect OPEC to agree on the increase, shared equally across its members, excluding Iraq. A temporary allocation of the extra barrels may also be agreed.
But as OPEC President Abdullah bin Hamad Al Attiyah said late Saturday, there's no "magic number" yet.
-By Fred Pals, Dow Jones Newswires; 0043-664-5446851; fred.pals.dowjones.com
Venezuelans continue to rally, protest
www.grandforks.com
Posted on Sat, Jan. 11, 2003
CHRISTOPHER TOOTHAKER
Associated Press
CARACAS, Venezuela - Supporters of Hugo Chavez planned rallies in the capital Saturday and opponents planned protests in several foreign cities after the Venezuelan president threatened to seize private food stocks and plants to end shortages.
Chavez warned businesses hoarding food on Friday that he might send troops to seize private property and distribute basic foodstuffs, which have begun to run low because of a six-week general strike.
Chavez supporters planned a show of support for the president in one of the capital's poorest districts, while opponents were staging a protest in the central city of Maracay, Venezuela's military center. Rallies also were planned in several foreign cities, including Washington, Toronto and London.
Chavez stopped short of giving an order, but had issued a decree in December allowing the military to temporarily confiscate private property to guarantee the flow of gasoline and other basic essentials.
Soldiers have since commandeered private gasoline trucks and National Guard troops seized 14 full gasoline tankers on Friday in the central state of Carabobo, the state news agency Venpres reported.
"This is an economic coup. They are trying to deny the people food, medicine and even water," Chavez told thousands of supporters in western Cojedes state on Friday. "They won't succeed."
The Venezuelan-American Chamber of Commerce told its more than 1,000 members to report any seizures of private property, saying such action would be illegal.
The president also said he fired 1,000 workers from the state oil monopoly Petroleos de Venezuela S.A., or PDVSA. An estimated 30,000 of the company's 40,000 employees have joined the strike.
Venezuela's opposition launched the strike Dec. 2 to pressure Chavez, who was elected in 1998 and re-elected two years later, to resign and call elections if he loses a nonbinding referendum on his rule.
Chavez insists Venezuela's constitution only permits a recall referendum on his presidency at the halfway-mark of his six-year term, or this August.
The strike has paralyzed the world's fifth largest oil exporter and caused fuel shortages while opponents stage daily street marches and urge tax evasion to force Chavez from office.
Meanwhile, many Venezuelans wait to see if disorganization and a lack of funding in Venezuela's elections council will dash opposition plans for a referendum Feb. 2.
The Chavez-dominated Congress has yet to authorize $22 million required for voting.
Alfredo Avella, president of the National Elections Council, said Friday the vote may be postponed to "a later date that permits the viability of the process."
Thousands of anti-Chavez protesters fought through tear gas and gunfire from pro-Chavez street toughs on Nov. 4 to deliver 2 million signatures to force the plebiscite.
Venezuelan law requires at least 10 percent of its 12 million registered voters to call a referendum.
Opposition leaders say they will pay for the referendum themselves if Congress refuses.
Many Venezuelans, however, say they won't contribute to the effort given that the nation is experiencing its worst recession in decades.
"The politicians asking for money are the same ones who robbed the country, and they are responsible for the economic crisis. Why should I give them any money?" said Manuel Arteaga, 45, who sells cigarettes on the sidewalks of downtown Caracas.
Other potential delays include organizing 180,000 volunteers to monitor voting booths, printing 12 million ballots, and protecting voting centers and materials.
While Chavez opponents wait for the ballot, the South American nation of 24 million is gripped with unrest.
Police used tear gas Friday to prevent pro- and anti-Chavez protesters from clashing in Venezuela's Margarita Island. Several children inside a nearby daycare were hospitalized, a local civil defense spokesman said.
Five people have died in protests since the strike began.
Negotiations to end the stalemate, led by secretary-general of the Organization of American States Cesar Gaviria and including officials from the White House, have made little progress.
Chavez supporters, opponents plan more rallies as standoff continues
www.canada.com
Canadian Press
Saturday, January 11, 2003
CARACAS (AP) - Allies of President Hugo Chavez called on supporters to rally in one of the capital city's poorest districts Saturday to celebrate government efforts to jump-start the state-run oil company hobbled by a 41-day general strike.
Venezuelans living abroad planned anti-Chavez demonstrations in several major cities one day after Chavez threatened to seize control of food-production facilities to deal with domestic food shortages.
Meanwhile, many Venezuelans are waiting to see if disorganization and a lack of funding in Venezuela's elections council will dash opposition plans for a referendum next month and hopes to weaken Chavez's presidency.
Chavez says the vote is illegal and the Congress has yet to authorize the funds required for balloting.
Alfredo Avella, president of the National Elections Council, said Friday the vote may be postponed to "a later date that permits the viability of the process."
Venezuela's opposition launched a strike Dec. 2 to pressure Chavez to resign and call elections if he loses the nonbinding referendum on his rule.
Chavez, a former paratrooper elected in 1998 and re-elected two years later, insists the constitution only permits recall referendum on his presidency halfway into his six-year term: this August.
The strike has paralysed the world's fifth largest oil exporter and caused fuel shortages while opponents stage daily street marches and urge tax evasion to force Chavez from office.
Chavez has refused to give in to opposition demands. On Friday, he told troops to be ready "to militarily seize the food production plants." He asked state governors belonging to his political coalition to be ready to co-operate.
"This is an economic coup. They are trying to deny the people food, medicine and even water," Chavez told thousands of supporters in western Cojedes state. "They won't succeed."
The Venezuelan-American Chamber of Commerce told its members that seizures of food plants would be illegal.
The president also said he fired 1,000 workers from the state oil monopoly Petroleos de Venezuela S.A., or PDVSA. An estimated 30,000 of the company's 40,000 employees have joined the strike.
Iran/OPEC/Venezuela -2: Should Express Support For Chavez
Sunday January 12, 12:14 AM
sg.biz.yahoo.com
VIENNA (Dow Jones)--State-run radio in Iran said Saturday that OPEC should "rush to help" Venezuela and that Sunday's meeting should offer solutions to the strike-hit country, the BBC's monitoring service reported Saturday.
Following phone talks between Venezuelan President Hugo Chavez and Iran's President Mohammad Khatami, a commentator on the Voice of the Islamic Republic of Tehran cited "America's war-mongering designs on Iraq" for volatile oil prices as well as the general strike in Venezuela.
AdultsThe commentator said: "I believe that other OPEC members should rush to help that country, now that Chavez is facing serious oil production problems because of domestic difficulties and the indirect support of the American government for his opponents.
"Brazil has already announced that it will dispatch oil experts to that country and other OPEC members could perhaps also assess ways of helping the government of Venezuela to overcome its current problems. The OPEC session which is due to be held in Vienna tomorrow would be an appropriate venue for the raising of that matter and, undoubtedly, oil-producing countries could assess ways of bringing stability to oil prices, express their support for Chavez and display their unity to the world which could result in the further strengthening of the OPEC."